THE GOVERNMENT

Article 1.- Scope of regulation

1. This Decree details the implementation of a number of articles of the Ordinance on Foreign Exchange regarding foreign exchange activities of residents and nonresidents in current transactions, capital transactions, use of foreign exchange, provision of foreign exchange services, foreign currency markets and foreign exchange rates as well as the management of gold import and export in the Socialist Republic of Vietnam.

2. The management of state foreign exchange reserves shall comply with the Government's separate regulations.

3. The handling of violations related to foreign exchange and foreign exchange activities shall comply with the Government's regulations on sanctioning administrative violations in the monetary and banking domain.

Article 2.- Subjects of application

1. Organizations and individuals being residents or nonresidents conducting foreign exchange activities in Vietnam.

2. Organizations and individuals being residents involved in foreign exchange activities in terms of management, inspection and handling of violations.

Article 3.- Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Foreign exchange includes:

a/ Currencies of other countries or territories, the common European currency and other common currencies used in international and regional payment (hereinafter referred to as foreign currencies);

b/ Foreign-currency payment instruments, including checks, credit cards, bills of exchange, promissory notes, deposit certificates and other payment instruments;

c/ Valuable papers denominated in foreign currencies, including government bonds, corporate bonds, time bonds, shares and valuable papers of other types;

d/ Gold belonging to the state foreign exchange reserves, in overseas accounts of residents; gold in bullions, bars, granules or pieces which is brought into or out of the Vietnamese territory;

e/ The currency of the Socialist Republic of Vietnam, in case it is transferred into or out of the Vietnamese territory or used in international payment.

2. Residents mean organizations or individuals being the following subjects:

a/ Credit institutions established and doing business in Vietnam (hereafter called credit institutions);

b/ Economic organizations established and doing business in Vietnam, excluding subjects defined at Point a of this Clause (hereafter called economic organizations);

c/ Vietnamese state agencies, people's armed forces units, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, social funds and charity funds operating in Vietnam;

d/ Foreign-based Vietnamese diplomatic missions and consulates;

e/ Foreign-based representative offices of organizations defined at Points a, b and c of this Clause;

f/ Vietnamese citizens residing in Vietnam; Vietnamese citizens residing overseas for less than 12 months; Vietnamese citizens working for organizations defined at Points d and e of this Clause and their accompanying dependents;

g/ Vietnamese citizens going abroad for tourism, study, medical treatment or visit;

h/ Foreigners residing in Vietnam for 12 months or more, except those coming to Vietnam for study, medical treatment, tourism or work for Vietnam-based foreign diplomatic missions, consulates or representative offices of foreign organizations.

3. Nonresidents mean subjects other than those defined in Clause 2 of this Article.

4. Capital transactions mean capital transfer transactions between residents and nonresidents in the following domains:

a/ Direct investment;

b/ Investment in valuable papers;

c/ Borrowing of foreign loans and payment of foreign debts;

d/ Provision and recovery of foreign loans;

e/ Other forms of investment under the provisions of Vietnamese law.

5. Current transactions mean transactions between residents and nonresidents not for capital transfer purpose.

6. Payment and money transfer for current transactions shall cover:

a/ Payments and money transfers related to import or export of goods or services;

b/ Short-term commercial credit loans and bank loans;

c/ Earnings generated from direct or indirect investments;

d/ Money transfers when the decrease of direct investment capital is allowed;

e/ Payments of interests on, and installment payments of principals of, foreign loans;

f/ One-way money transfers for consumption purposes;

g/ Other similar transactions.

7. One-way money transfer means transactions of money transfer from overseas into Vietnam or vice versa via banks or by post to provide financial supports, aids or assistance to one’s relatives or for individual spending purposes, irrelevant to payment for import or export of goods and services.

8. Foreign exchange activities mean activities of residents or nonresidents in current transactions, capital transactions, use of foreign exchange in the Vietnamese territory, provision of foreign exchange services, and other transactions related to foreign exchange.

9. Provision of foreign exchange services means provision by credit institutions and other organizations of services related to foreign exchange activities in order to meet the customers’ demands in accordance with regulations of the State Bank of Vietnam.

10. Vietnam dong exchange rate means the price of a foreign monetary unit calculated in the Vietnamese monetary unit.

11. Foreign currency cash includes bank notes and coins.

12. Licensed credit institutions mean banks and non-bank credit institutions allowed to conduct foreign exchange activities and provide foreign exchange services under the provisions of this Decree.

13. Foreign direct investment in Vietnam means transfer by nonresidents of their capital into Vietnam to conduct investment and business activities by setting up and participating in management of enterprises, or in other forms under the provisions of Vietnamese law.

14. Foreign indirect investment in Vietnam means purchase or sale of securities or other valuable papers or contribution of capital or purchase of shares by nonresidents in any form under the provisions of Vietnamese law without directly participating in the management work.

15. Offshore investment means transfer by residents of their capital abroad for investment in the forms provided for by law.

16. Borrowing of foreign capital and payment of foreign debts mean borrowing of loans from, and payment of debts to, nonresidents by residents in the forms provided for by law.

17. Provision and recovery of foreign loans mean provision of loans to, and recovery of debts from, nonresidents by residents in the forms provided for by law.

18. International payment balance means a general balance sheet with systematic statistics on all economic transactions reflected in freely convertible foreign currencies between Vietnam and other countries in a certain period.

19. Foreign currency market means the place where foreign currency sale and purchase activities take place. Vietnam's foreign currency markets include the inter-bank foreign currency market and the foreign currency market between banks and their customers.

Article 4.- Application of laws on foreign exchange, treaties, foreign laws and international practice

1. Foreign exchange activities must comply with the provisions of this Decree and relevant provisions of law.

2. When a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Decree, the provisions of that treaty prevail.

3. Where a foreign exchange activity has not yet been provided for by Vietnamese law, the involved parties may reach agreement on the application of a foreign law or international practice if the application of that law or practice does not contravene the basic principles of Vietnamese law.

Article 5.- Liberalization of current transactions

In the Vietnamese territory, all payment transactions and money transfers for current transactions between residents and nonresidents are conducted freely in accordance with the provisions of this Decree and relevant provisions of law on the following principles:

1. Residents and nonresidents may buy, transfer or carry abroad foreign currencies to meet payment and money transfer demands in current transactions;

2. Residents and nonresidents shall produce vouchers under regulations of credit institutions upon the purchase, transfer or carrying abroad of foreign currencies in service of current transactions and take responsibility before law for the truthfulness of papers and vouchers produced to licensed credit institutions.

3. When buying, transferring or carrying abroad foreign currencies in service of current transactions, residents and nonresidents need not produce vouchers relating to the certification of the fulfillment of their tax obligations towards the Vietnamese State.

Article 6.- Payment and transfer of money related to the import or export of goods and services

1. Residents having foreign currency incomes from the export of goods or services or other current income sources overseas must transfer such incomes into their foreign currency accounts opened at licensed credit institutions in Vietnam according to the payment time limits of contracts or payment vouchers.

2. Residents having foreign currency incomes from the export of goods or services overseas that wish to retain part or whole of their incomes in foreign countries must acquire permission of the State Bank of Vietnam and remit those incomes into their accounts opened at foreign banks. The remaining foreign currency amounts must be transferred to the home country.

3. All payment and money transfer transactions related to the import or export of goods or services must be conducted by account transfer via licensed credit institutions, except for some cases of cash payment, which shall be considered and approved by the State Bank of Vietnam.

Article 7.- One-way transfer of money from overseas into Vietnam

1. Residents being organizations which earn foreign currencies from one-way money transfers must transfer such foreign currencies into their foreign currency accounts opened at licensed credit institutions or sell such amounts to licensed credit institutions.

2. Residents being individuals who earn foreign currencies from one-way money transfers may remit such foreign currencies into their foreign currency accounts, deposit such foreign currencies as savings or withdraw them in cash to store, carry along or sell to licensed credit institutions for Vietnam dong or other foreign currencies or use them for other purposes in accordance with the provisions of this Decree and relevant provisions of law.

Article 8.- One-way money transfer abroad from Vietnam

1. Residents being organizations may conduct one-way money transfer abroad for the purpose of providing financial supports, aids or other purposes in accordance with regulations of the State Bank of Vietnam.

2. Residents being Vietnamese citizens may purchase, transfer or carry foreign currencies abroad via licensed credit institutions for the following purposes:

a/ Study or medical treatment in foreign countries;

b/ Working trips, tours or visits to foreign countries;

c/ Payment of charges or fees to foreign countries;

d/ Provision of subsidies to their relatives in foreign countries;

e/ Transfer of inheritance money to their heirs in foreign countries;

f/ One-way money transfer in case of permanent residence in foreign countries;

g/ Other purposes to meet other lawful needs.

3. Non-residents or residents being foreigners who have foreign currencies on their accounts or lawful foreign currency income sources may transfer or carry such foreign currencies abroad; if having lawful income sources in Vietnam dong, they may buy foreign currencies to transfer or carry them abroad.

4. Licensed credit institutions shall, based on the actual and reasonable requirements of each money transfer transaction, examine vouchers and papers presented by residents or nonresidents for sale or transfer of foreign currencies, and certify sources of foreign currencies which may be self-procured or bought from licensed credit institutions for carrying abroad.

Article 9.- Carrying of foreign currency cash, Vietnam dong cash and gold on entry or exit

Based on the actual situation in each period, the State Bank of Vietnam shall specify the following contents regarding the carrying of foreign currency cash, Vietnam dong cash or gold by residents or non-residents on entry or exit:

1. The limits of foreign currency cash, Vietnam dong cash and gold carried along on entry or exit, which must be declared with the border-gate customs;

2. Papers which must be presented in case of carrying along foreign currency cash, Vietnam dong cash or gold on exit, which exceeds the limits subject to customs declaration;

3. Subjects competent to certify papers defined at Point 2 above.

Article 10.- Currencies used in current transactions

1. Residents may use either Vietnam dong, freely convertible foreign currencies or other currencies accepted by licensed credit institutions as payment currencies in current transactions.

2. In case of using Vietnam dong for payment in current transactions, residents and non-residents may conduct account transfer via Vietnam dong accounts opened at licensed credit institutions.

Article 11.- Opening and use of foreign currency-direct investment accounts

Residents being foreign-invested enterprises and foreign parties to business cooperation contracts must each open a foreign-currency direct investment account at a licensed credit institution in order to conduct the following collection and spending transactions:

1. Collecting money contributed to charter capital, capital for direct investment and medium- and long-term foreign loans.

2. Collecting foreign currencies from foreign currency deposit accounts of residents being foreign-invested enterprises and foreign parties to business cooperation contracts.

3. Spending on transfer of foreign currencies into foreign currency accounts of residents being foreign-invested enterprises and foreign parties to business cooperation contracts.

4. Spending on payment of principals, interests and charges of medium- and long-term foreign loans out of Vietnam.

5. Spending on transfer of capital, profits and other lawful incomes of foreign investors out of Vietnam.

6. Other collection and spending transactions related to foreign direct investment activities.

Article 12.- Transfer of capital for direct investment

Capital transfers for direct investment into Vietnam must be effected via foreign currency-direct investment accounts opened at licensed credit institutions.

Article 13.- Transfer of capital abroad

1. Residents being foreign-invested enterprises and foreign parties to business cooperation contracts may transfer abroad charter capital, capital for direct investment, loan capital, interests and charges of foreign loans as well as lawful earnings related to their direct investment activities in Vietnam via foreign currency-direct investment accounts.

2. Residents being foreign-invested enterprises and foreign parties to business cooperation contracts may use their Vietnam dong earnings from direct investment activities in Vietnam to buy foreign currencies at licensed credit institutions and transfer them abroad within 30 days after buying foreign currencies.

Article 14.- Opening and use of Vietnam-dong indirect investment accounts

1. Nonresidents being foreign investors must open Vietnam-dong indirect investment accounts at licensed credit institutions in order to conduct indirect investment activities in Vietnam. Investment capital in foreign currencies must be sold for Vietnam dong for indirect investment in Vietnam. All transactions related to indirect investment activities must be effected via Vietnam-dong indirect investment accounts.

2. Vietnam dong-indirect investment accounts shall be used to conduct the following collection and spending transactions:

a/ Collection from the sale of foreign currencies to licensed credit institutions;

b/ Collection from wages, bonuses and lawful incomes of nonresidents being foreign investors;

c/ Collection from the transfer of contributed capital or equities, sale of securities, receipt of dividends and other earnings generated from indirect investment activities;

d/ Spending on capital contribution, purchase of equities or securities and other spendings related to indirect investment activities;

e/ Spending on the purchase of foreign currencies from licensed credit institutions for transfer abroad;

f/ Spending on payment of costs arising in Vietnam;

g/ Other collection and spending transactions related to indirect investment in Vietnam.

Article 15.- Transfer of capital abroad

Nonresidents being foreign investors may use Vietnam dong in their Vietnam dong-indirect investment accounts to buy foreign currencies at licensed credit institutions and transfer them abroad.

Article 16.- Competence to permit offshore investment

1. Residents being organizations or individuals may make offshore investment in the form of direct investment when so permitted by investment certificate-granting agencies under the provisions of law on offshore direct investment.

2. Residents being organizations or individuals may make offshore investment in the form of indirect investment if meeting all the conditions set by the State Bank of Vietnam. The Governor of the State Bank of Vietnam shall specify the conditions, order, procedures and the use of foreign exchange for offshore indirect investment.

Article 17.- Sources of foreign currency capital for offshore investment

Residents being organizations or individuals may use their own foreign currency capital on their foreign currency savings accounts, foreign currencies purchased from licensed credit institutions or foreign currency loans for offshore investment.

Article 18.- Transfer of investment capital abroad

1. For residents being credit institutions: They may transfer investment capital abroad in accordance with regulations of the State Bank of Vietnam.

2. For residents being organizations and individuals:

a/ Residents being organizations or individuals permitted to make offshore investment must open foreign-currency offshore investment accounts at licensed credit institutions. All transactions of transferring foreign currencies abroad or into Vietnam related to offshore investment must be conducted via these accounts;

b/ Residents being organizations or individuals permitted to make offshore investment must register their foreign-currency offshore investment accounts with the State Bank of Vietnam and get its certification before transferring investment capital abroad. The State Bank of Vietnam shall specify the order, procedures and dossiers for registration and certification of foreign-currency offshore investment accounts.

3. Foreign-currency offshore investment accounts shall be used for the following collection and spending transactions:

a/ Spending on the transfer of self-procured foreign currencies, foreign currencies purchased from licensed credit institutions and foreign currency loans for offshore investment;

b/ Spending on the transfer of foreign currencies into foreign currency savings accounts of residents being organizations or individuals permitted to make offshore investment;

c/ Spending on the sale of foreign currencies to licensed credit institutions;

d/ Collection of profits, revenues and other lawful earnings from offshore investment activities;

e/ Collection of foreign currency capital already invested back in Vietnam upon the termination, liquidation or completion of investment activities;

f/ Collection of foreign currencies from purchase or borrowing from licensed credit institutions or from foreign currency savings accounts of residents being organizations or individuals permitted to make offshore investment.

g/ Other collection and spending transactions related to offshore investment activities.

Article 19.- Transfer of capital and profits back to Vietnam

1. Capital, profits and earnings from offshore investment must be transferred back to Vietnam via foreign currency accounts opened at licensed credit institutions.

2. For offshore direct investment, the principal capital, profits and earnings from offshore projects must be transferred back to the home country in accordance with the provisions of law on offshore investment.

3. For offshore indirect investment, the profits and earnings from indirect investment activities must be transferred back to the home country within 60 days after the end of a fiscal year of the investment-receiving country.

4. The use of profits and earnings from offshore investment for reinvestment must be permitted by competent agencies and registered with the State Bank of Vietnam.

Article 20.- Borrowing of foreign loans and payment of foreign debts by the Government

The borrowing of foreign loans and payment of foreign debts by the Government shall comply with the current provisions of law on management of borrowing of foreign loans and payment of foreign debts.

Article 21.- Borrowing of foreign loans and payment of foreign debts by residents being economic organizations or credit institutions

1. Residents being economic organizations or credit institutions may directly borrow foreign loans and pay foreign debts on the principle of self-borrowing, self-paying and using borrowed capital for proper purposes in accordance with law.

2. Residents being economic organizations or credit institutions that borrow foreign loans and pay foreign debts must satisfy the conditions on borrowing of foreign loans and payment of foreign debts, register their loans, open and use accounts for borrowing of foreign loans and payment of foreign debts, withdraw and transfer money to pay debts as well as report on the use of borrowed capital in accordance with regulations of the State Bank of Vietnam.

3. Foreign loans of residents being economic organizations or credit institutions must be registered with and certified by the State Bank of Vietnam. The State Bank of Vietnam shall certify the registration of loans within the total foreign capital-borrowing limit approved annually by the Prime Minister.

Article 22.- Borrowing of foreign loans and payment of foreign debts by residents being individuals

1. Residents being individuals may borrow loans and pay foreign debts only when satisfying the relevant conditions set by the State Bank of Vietnam and permitted by the Governor of the State Bank of Vietnam.

2. Residents being individuals must register their loans, open and use accounts for borrowing of foreign loans and payment of foreign debts, withdraw capital and pay foreign debts as well as report on the use of their loans in accordance with regulations of the State Bank of Vietnam.

Article 23.- Purchase of foreign currencies to pay foreign debts

Residents may purchase foreign currencies from licensed credit institutions for the payment of foreign loan principals, interests and charges on the basis of presentation of valid vouchers.

Article 24.- Provision and recovery of foreign loans by the Government

1. The Government shall decide on the provision and recovery of foreign loans of the State, the Government and their authorized organizations on the basis of macro balances of the state capital sources.

2. The Finance Ministry shall assume the prime responsibility for, and coordinate with the State Bank of Vietnam, the Ministry of Planning and Investment and concerned ministries and branches in submitting to the Prime Minister for decision the lending levels, loan capital sources, lending forms, borrowers and mechanisms for management of the provision and recovery of foreign loans by the Government.

3. Annually, the Finance Ministry shall assume the prime responsibility for, and coordinate with the concerned ministries and branches in, summing up the situation of the provision and recovery of foreign loans by the Government and report it to the Prime Minister.

Article 25.- Provision and recovery of foreign loans by residents being credit institutions

1. Residents being credit institutions may provide and recover foreign loans in form of financial or commercial credit in accordance with regulations of the State Bank of Vietnam.

2. The State Bank of Vietnam shall specify lending conditions, borrowers, lending forms and mechanisms for management of foreign-loan provision and recovery by residents being credit institutions.

Article 26.- Foreign-loan provision and recovery by residents being economic organizations

1. Residents being economic organizations may provide and recover foreign loans only when so permitted by the Prime Minister. The State Bank of Vietnam shall specify licensing conditions, procedures and order and submit them to the Prime Minister for decision to permit residents being economic organizations to provide and recover foreign loans.

2. When permitted to provide and recover foreign loans in foreign currencies, residents being economic organizations must open foreign currency accounts for the provision and recovery of foreign loans at licensed credit institutions, transfer loan capital, recover loan principals, interests and relevant charges via these accounts in accordance with regulations of the State Bank of Vietnam.

Article 27.- Residents being organizations which issue securities abroad

1. When licensed to issue securities in form of bonds in foreign currencies abroad, residents being organizations must comply with this Decree's provisions on borrowing of foreign loans and payment of foreign debts, which are applicable to residents being organizations, as well as relevant provisions of law.

2. When licensed to issue securities in form of shares, investment fund certificates or other securities in foreign currencies abroad, residents being organizations must open capital accounts for issuance of securities in foreign currencies at licensed credit institutions and conduct foreign currency collection and spending related to the issuance of securities via such accounts in accordance with regulations of the State Bank of Vietnam.

Article 28.- Nonresidents being organizations issuing securities in Vietnam

1. Nonresidents being organizations may only issue securities in Vietnam dong in the Vietnamese territory.

2. When licensed to issue securities in Vietnam, nonresidents being organizations must open capital accounts for issuance of securities in Vietnam dong at licensed credit institutions, and conduct Vietnam-dong collection and spending transactions related to the issuance of securities via such accounts in accordance with regulations of the State Bank of Vietnam.

3. Vietnam dong earnings from the issuance of securities in the Vietnamese territory shall be used to buy foreign currencies from licensed credit institutions for transfer abroad.

Article 29.- Provisions on restricted use of foreign exchange

In the Vietnamese territory, all transactions, payments, listings and advertisements of residents and nonresidents must not be effected in foreign exchange, except for the following cases:

1. Transactions with credit institutions and other organizations licensed to provide foreign exchange services.

2. Residents being organizations may internally transfer capital in foreign currencies via bank accounts (between units with the legal person status and dependent cost-accounting units or vice versa).

3. Residents may contribute capital in foreign currencies for execution of foreign investment projects in Vietnam.

4. Residents may accept payments in foreign currencies, which are made through account transfer under entrusted import or export contracts.

5. Residents being domestic or foreign contractors may accept payments in foreign currencies, which are made through account transfer by investors or principal contractors for payment and transfer abroad.

6. Residents being insurance business organizations may receive foreign currencies transferred via bank accounts by insurance buyers for goods and services for which re-insurance must be purchased overseas.

7. Residents being organizations dealing in duty-free goods, organizations providing services in isolated areas of international border-gates or organizations dealing in bonded warehouses may accept payments in foreign currencies and Vietnam dong from the supply of goods and provision of services.

8. Residents being border-gate customs offices, police at international border gates and bonded warehouses may receive foreign currencies from nonresidents with regard to entry and exit taxes and visa fees or service charges.

9. Nonresidents being diplomatic missions or consulates may collect entry and exit visa fees and other charges and fees in foreign currencies.

10. Nonresidents and residents being foreigners may receive wages, bonuses and allowances in foreign currencies from residents or nonresidents being organizations.

11. Nonresidents may make account transfers in foreign currencies to other nonresidents or pay residents money for export of goods and services.

12. Other cases to be considered and approved by the Governor of the State Bank of Vietnam.

Article 30.- Foreign currency deposit accounts in the country

1. Residents and nonresidents being organizations may open and use foreign currency deposit accounts at licensed credit institutions in order to conduct the following collection and spending transactions:

a/ Collecting foreign currencies transferred from abroad;

b/ Collecting foreign currencies from lawful revenue sources in the country;

c/ Collecting foreign currencies in cash from overseas under regulations of the State Bank of Vietnam;

d/ Spending on the sale of foreign currencies to licensed credit institutions;

e/ Spending on money transfer or payment for current transactions, capital transactions and transactions in which payment in foreign currencies is allowed in the country;

f/ Spending on the conversion into other foreign currencies or payment instruments in foreign currencies;

g/ Spending on the withdrawal of foreign currency cash for individuals working in such organizations when they are sent to work abroad;

h/ Spending on account transfer or withdrawal of foreign currency cash to pay wages, bonuses or allowances to nonresidents or residents being foreigners;

i/ Spending on the transfer abroad or to foreign currency deposit accounts of other nonresidents or payment to residents money for exported goods or services (for nonresidents being organizations).

2. Residents and nonresidents being individuals may open and use foreign currency deposit accounts at licensed credit institutions to conduct the following collection and spending transactions:

a/ Collecting foreign currencies transferred via bank accounts from overseas;

b/ Collecting foreign currency cash brought from overseas under regulations of the State Bank of Vietnam;

c/ Collecting foreign currencies from other lawful revenue sources;

d/ Spending on the sale of foreign currencies to licensed credit institutions;

e/ Spending on money transfer or payment for current transactions, capital transactions and transactions in which payment in foreign currencies is allowed in the country;

f/ Spending on the conversion into other foreign currencies or payment instruments in foreign currencies;

g/ Spending on donation, presentation or inheritance in accordance with law;

h/ Spending on the withdrawal of foreign currency cash;

i/ Spending on the transfer abroad or to foreign currency deposit accounts of other nonresidents (for nonresidents being individuals);

j/ Spending on the transfer to foreign currency savings at licensed credit institutions (for residents being individuals).

3. Licensed credit institutions shall oversee and control collections and spendings effected via foreign currency deposit accounts in order to ensure that payments and money transfers are conducted for proper purposes and in accordance with this Decree.

Article 31.- Foreign currency accounts of residents in foreign countries

1. Residents being organizations or individuals may open and use foreign currency accounts in foreign countries according to the following regulations:

a/ Residents being credit institutions may open and use accounts in foreign countries in order to conduct foreign exchange activities overseas;

b/ Residents being economic organizations that have branches or representative offices in foreign countries or wish to open foreign currency accounts in foreign countries in order to receive foreign loan capital, implement commitments or perform contracts with foreign parties may be considered and granted permits by the State Bank of Vietnam to open foreign currency accounts overseas;

c/ Residents being Vietnamese diplomatic missions, consulates, armed forces units and representatives of political organizations, socio-political organizations, social organizations, socio-professional organizations, social funds or charity funds based in foreign countries may open and use foreign currency accounts overseas;

d/ During their stays overseas, Vietnamese citizens may open and use foreign currency accounts overseas in accordance with the laws of host countries.

Upon the termination or expiration of their stays overseas, organizations and individuals mentioned at Points c and d above must close their accounts and transfer all account balances back to the home country.

2. The State Bank of Vietnam shall specify the conditions, dossiers and procedures for the grant and withdrawal of permits to open and use foreign currency accounts for subjects defined at Point b, Clause 1 of this Article.

Article 32.- Use of foreign currency cash by individuals

1. Residents and nonresidents being individuals that have foreign currencies in cash may store, carry along, donate, present, bequeath or sell them to licensed credit institutions, transfer or carry abroad such foreign currencies for lawful purposes and payment to subjects which are entitled to collect foreign currencies in accordance with the provisions of this Decree.

2. Residents being individuals that have foreign currencies in cash may deposit such foreign currencies as savings at licensed credit institutions, withdraw principals and interests in foreign currency cash in accordance with the provisions of law on foreign currency savings.

Article 33.- Use of Vietnam dong by nonresidents

Nonresidents being organizations or individuals may open and use Vietnam dong at licensed credit institutions in order to conduct the following collection and spending transactions:

1. Collection from the sale of foreign currencies to licensed credit institutions.

2. Collection from lawful revenue sources in Vietnam.

3. Spending on payment or withdrawal of cash for spending in Vietnam.

4. Spending on payment for current transactions or capital transactions under the provisions of this Decree.

5. Spending on donation, presentation or inheritance in accordance with the provisions of law.

6. Spending on the purchase of foreign currencies from licensed credit institutions for transfer abroad.

7. Spending for other purposes permitted by law.

Article 34.- Use of Vietnam dong by residents being foreign individuals

1. Residents being foreign individuals may open and use Vietnam dong accounts at licensed credit institutions in order to conduct collection and spending transactions under the provisions of Article 33 of this Decree.

2. Residents being foreign individuals may open and use Vietnam dong-indirect investment accounts opened at licensed credit institutions to conduct indirect investment transactions according to the provisions of Article 14 of this Decree.

Article 35.- Use of currencies of the countries bordering on Vietnam

Residents being organizations or individuals that have lawful revenue sources in currencies of the countries bordering on Vietnam from the import or export of goods or services or other lawful revenue sources may open accounts in such currencies at licensed credit institutions and conduct the following collection and spending transactions:

a/ Collection from the sale of goods and services;

b/ Collection from the purchase of currencies of the bordering countries at licensed credit institutions;

c/ Collection from lawful revenue sources in Vietnam;

d/ Spending on payment for import of goods and services;

e/ Spending on the sale of foreign currencies to licensed credit institutions or to foreign exchange counters.

f/ Spending on withdrawal of cash for payment of salaries, bonuses and allowances to foreigners working for the organizations or spendings in bordering countries;

g/ Spending for other purposes permitted by law.

2. The use of currencies of bordering countries in the sale and purchase of goods in border areas and border-gate economic zones shall comply with regulations of the State Bank of Vietnam.

Article 36.- Issuance and use of payment cards

1. In the Vietnamese territory, residents and nonresidents being individuals with international cards may use such cards for payment at licensed credit institutions and units accepting them.

2. Units accepting cards may only accept payment in Vietnam dong made by the card payment banks.

3. Based on the practical situation, the State Bank of Vietnam shall provide for the issuance and use of cards according to the objectives of foreign exchange management.

Article 37.- Vietnam's foreign currency market

1. Foreign currency market means the place where foreign currency sale and purchase take place. Participants in foreign currency market include the State Bank of Vietnam, licensed credit institutions, foreign exchange counters as well as organizations and individuals being residents and nonresidents in Vietnam.

The State Bank of Vietnam shall specify conditions, modes and types of foreign currency transactions in the foreign currency market.

2. Inter-bank foreign currency market means a market for transactions between the State Bank of Vietnam and licensed credit institutions and among licensed credit institutions. Members of the inter-bank foreign currency market may buy and sell foreign currencies by the modes and forms of professional transactions, based on the agreements and commitments between concerned parties in accordance with international practice and regulations of the State Bank of Vietnam.

3. When participating in the concentrated inter-bank foreign currency market organized and administered by the State Bank of Vietnam, licensed credit institutions must abide by the regulation on organization and operation of this market, issued by the State Bank of Vietnam.

Article 38.- Operations of the State Bank of Vietnam in the foreign currency market

Based on the exchange rate fluctuations in the foreign currency market and objectives of the monetary policy in each period, the State Bank of Vietnam shall formulate and implement a scheme of intervention by purchasing or selling foreign currencies in the domestic foreign currency market.

Article 39.- Exchange rate mechanism applicable to Vietnam dong

1. The exchange rate mechanism applicable to Vietnam dong shall be formulated on the basis of the foreign-currency market demand and supply, and regulated by the State. The State Bank of Vietnam shall regulate exchange rates through the use of monetary policy instruments and the implementation of the scheme on sale and purchase in the foreign currency market.

2. The exchange rate mechanism applicable to Vietnam dong is a floating exchange rate mechanism administered by the State Bank of Vietnam on the basis of the monetary baskets of the countries having trade, borrowing, debt-payment and investment relations with Vietnam according to specific macro-economic objectives in each period.

Article 40.- Management of the import and export of gold in bullions, bars, granules or pieces

Credit institutions and organizations licensed to trade in gold may import and export gold in bullions, bars, granules and pieces in accordance with regulations of the State Bank of Vietnam.

Article 41.- Scope of, and conditions for, the provision of foreign exchange services by banks

1. When satisfying the conditions set by the State Bank of Vietnam, banks may be permitted by the State Bank of Vietnam to provide foreign exchange services within the following scope:

a/ Providing foreign exchange transactions in form of spot, forward or swap transactions, option, future contracts and other foreign exchange transactions in accordance with international practice;

b/ Mobilizing capital, lending and providing guarantees in foreign currencies in the forms provided by the State Bank of Vietnam;

c/ Issuing, acting as agents to issue international payment cards;

d/ Providing money transfer and payment services (domestically and internationally) to subjects defined in this Decree; receiving and paying foreign currencies;

e/ Discounting, rediscounting valuable papers in foreign currencies;

f/ Authorizing other credit institutions and economic organizations acting as agents to provide a number of foreign exchange services, including currency exchange, foreign currency receipt and payment and other services as provided for by this Decree;

g/ Providing entrusting services and services of managing assets in foreign exchange;

h/ Providing banking services of investment in foreign exchange (foreign currency securities purchase, sale, merger, underwriting and issuance agency...);

i/ Providing foreign exchange consultancy services to customers;

j/ Conducting other foreign exchange activities in accordance with international practice and Vietnamese law.

2. The State Bank of Vietnam shall specify conditions, dossiers and procedures for and certify the qualifications of banks to provide foreign exchange services.

Article 42.- Provision of foreign exchange services by non-bank credit institutions

Non-bank credit institutions must register with the State Bank of Vietnam their operations to provide a number or all of the following foreign exchange services:

1. For financial companies:

a/ Providing foreign exchange transactions in form of spot, forward or swap transactions, option and other foreign exchange transactions in accordance with international practice;

b/ Receiving time deposits in foreign currencies for a term of one year or longer, issuing bonds and valuable papers in foreign currencies, borrowing capital in foreign currencies from domestic and foreign credit institutions;

c/ Providing short-, medium- and long-term loans in foreign currencies, discount, rediscount and pledge of valuable papers in foreign currencies, providing credit guarantees in foreign currencies;

d/ Providing entrusting services and services of managing assets in foreign exchange;

e/ Receiving and paying foreign currencies; authorizing economic organizations to act as foreign exchange agents or payment agents;

f/ Providing foreign exchange consultancy services to customers.

2. For financial leasing companies:

a/ Receiving time deposits in foreign currencies for a term of one year or longer, issuing bonds or valuable papers in foreign currencies, borrowing capital in foreign currencies from domestic and foreign credit institutions;

b/ Conducting financial leasing in foreign currencies;

c/ Providing credit guarantees in foreign currencies;

d/ Providing entrusting services and services of managing assets in foreign currencies;

e/ Providing foreign exchange consultancy services to customers.

3. Other non-bank credit institutions may provide a number of foreign exchange services under regulations of the State Bank of Vietnam.

4. The State Bank of Vietnam shall specify the conditions, dossiers and procedures for registration of the provision of foreign exchange services by non-bank credit institutions.

Article 43.- Provision of foreign exchange services by other organizations

1. Economic organizations may act as currency exchange agents for licensed credit institutions when so authorized. The authorization of currency exchange must be effected on the basis of currency exchange agency contracts between credit institutions and authorized economic organizations and registered with the State Bank of Vietnam.

2. Foreign currency reception and payment services

a/ Economic organizations acting as agents providing foreign currency reception and payment services for credit institutions must register with the State Bank of Vietnam. Economic organizations which directly provide foreign currency reception and payment services must be licensed by the State Bank of Vietnam;

b/ The State Bank of Vietnam shall specify the conditions, dossiers and procedures for registration and licensing of economic organizations which provide foreign currency reception and payment services.

3. Provision of other foreign exchange services

Economic organizations may provide foreign exchange services besides those prescribed in Clauses 1 and 2 of this Article only after they are licensed by the State Bank of Vietnam.

Article 44.- Scope of, and conditions for, the provision of foreign exchange services on international market

1. Credit institutions and other organizations may provide foreign exchange services on international market within the following scope:

a/ For banks

- Providing international payment services;

- Conducting foreign exchange and gold sale and purchase transactions on foreign markets;

- Participating in foreign monetary and derivative markets;

- Providing services of managing financial assets of customers overseas;

- Providing investment banking services (financial consultancy, sale, purchase, merger, guarantee, co-financing...) on international market.

b/ For financial companies:

- Conducting foreign exchange and gold sale and purchase transactions on foreign markets;

- Participating in foreign monetary and foreign exchange derivative markets;

- Providing services of managing financial assets of customers overseas;

c/ For other organizations:

The State Bank of Vietnam may, on a case-by-case basis, permit other organizations to provide a number of foreign exchange services mentioned in Clauses 1 and 2 of this Article.

2. The State Bank of Vietnam shall specify the conditions, dossiers and procedures for registration of foreign exchange service provision by credit institutions and other organizations on international market.

Article 45.- Observance of law on foreign exchange management

When providing foreign exchange services, credit institutions and other organizations licensed to conduct foreign exchange activities shall:

1. Provide foreign exchange services within the scope of operation stated in their licenses, certificates of registration of foreign exchange activities, the provisions of this Decree and relevant provisions of law.

2. Take responsibility before law for contents of foreign exchange services entrusted to credit institutions and economic organizations.

3. Observe regulations on assurance of safety in accordance with regulations of the State Bank of Vietnam.

4. Strictly observe and guide their customers to strictly observe regulations on foreign exchange management and relevant provisions of law.

Article 46.- Checking of vouchers

When conducting foreign exchange transactions for customers, credit institutions and other organizations licensed to conduct foreign exchange activities shall examine, check and keep papers and vouchers in compatibility with actual transactions in order to ensure that foreign exchange services are provided for proper purposes and in accordance with the provisions of law.

Article 47.- Satisfaction of foreign currency demands for payment in current transactions

Within the scope of their existing foreign currency supply capability, credit institutions and other organizations licensed to conduct foreign exchange activities shall satisfy foreign currency demands of residents and nonresidents for payment in current transactions, based on the actual and reasonable demand of each transaction.

Article 48.- Inspection, control and reporting

1. Credit institutions and other organizations licensed to conduct foreign exchange activities are subject to inspection, control and reporting regime provided for by the State Bank of Vietnam.

2. Responsibilities for information reported by licensed credit institutions

Licensed credit institutions shall report information on foreign exchange activities according to the following regulations:

a/ Reporting necessary information and data on foreign exchange and foreign exchange activities according to the time limits provided for in current legal documents on foreign exchange activities;

b/ Requesting customers to supply information for the gathering of data and information on foreign exchange and foreign exchange activities;

c/ Supplying information and advice on foreign exchange policies and activities for organizations and individuals in accordance with the provisions of law;

d/ Keeping secret and taking responsibility for information on the list of classified information of the banking industry.

3. Responsibilities for information reported by organizations and individuals

a/ Organizations and individuals involved in foreign exchange activities are obliged to supply information and data at the request of the State Bank of Vietnam or licensed credit institutions according to the time limits provided by current legal documents on foreign exchange activities;

b/ Organizations and individuals may request credit institutions to supply information guiding the proper implementation of policies on foreign exchange management.

Article 49- State management of foreign exchange activities

1. The Government shall perform the unified state management of foreign exchange activities:

a/ To take responsibility for performing the state management of foreign exchange activities;

b/ To elaborate and draft legal documents on foreign exchange which fall under its competence.

2. Responsibilities of the State Bank of Vietnam:

a/ To take responsibility before the Government and the Prime Minister for performing the state management of foreign exchange activities;

b/ To assume the prime responsibility for and draft legal documents on foreign exchange which fall under its competence;

c/ To coordinate with concerned ministries and branches in drafting legal documents related to foreign exchange;

d/ To take responsibility before the Government and the Prime Minister for international cooperation in the domain of foreign exchange;

e/ To grant and withdraw foreign exchange activity permits;

f/ To inspect and examine foreign exchange activities prescribed in this Decree and the observance of voucher and reporting regimes;

g/ To handle acts of violation on foreign exchange according to its competence.

3. Responsibilities of ministries, government-attached agencies and provincial/municipal People's Committees.

a/ To guide the implementation of this Decree according to their functions and tasks;

b/ To coordinate with the State Bank of Vietnam in drafting relevant legal documents on foreign exchange and foreign exchange activities;

c/ To coordinate with the State Bank of Vietnam in supplying information, propagating regulations and implementing regulations on foreign exchange management;

d/ To detect and handle violations on foreign exchange and foreign exchange activities which fall under their respective competence.

Article 50.- Information and reporting regime

1. Responsibilities of the State Bank of Vietnam:

a/ To promulgate the information and reporting regime, analyze, forecast and announce information on foreign exchange activities.

b/ To assume the prime responsibility for, and coordinate with ministries and branches in, gathering information and data for the state management of foreign exchange and formulating international payment balance.

2. Responsibilities of ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees

Ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees shall, within the ambit of their tasks and powers, report information and data on foreign exchange activities to the State Bank of Vietnam in service of the state management of foreign exchange and formulation of international payment balance.

Article 51.- Implementation effect

1. This Decree takes effect 15 days after its publication in "CONG BAO" and replaces the Government's Decree No. 63/1998/ND-CP of August 17, 1998, on foreign exchange management, Decree No. 05/2001/ND-CP of January 17, 2001, and Decree No. 131/2005/ND-CP of October 28, 2005, amending and supplementing a number of articles of the Government's Decree No. 63/1998/ND-CP.

2. To annul the provisions of decrees, decisions and circulars which are contrary to the provisions of this Decree.

Article 52.- Implementation guidance

1. The Governor of the State Bank of Vietnam shall guide and organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall organize the implementation of this Decree.